Update:
4/3/20:
PPP application submissions are now open.
In addition, these funds are designed to be used for payroll for full-time employees only, not 1099 contractors.
4/1/20:
We recently hosted a webinar featuring Duane Zobrist, founder of Broadmoor Outfitters, a tour operator who has successfully obtained federal relief funding before and is extremely knowledgeable about how the recently passed government bill applies to tour operators.
We’ve summarized the key points below.
Key Things To Know About The Payroll Protection Program (PPP):
What is it?
It is a 100% forgivable loan designed to help U.S. small businesses pay their staff and basic operating expenses. You are eligible for a loan up to 2.5x monthly payroll expenses, which includes W2 employees + benefits such as insurance, paid sick leave, workers’ comp, 1099 contractors as well as interests on mortgage/rent, utilities, etc.
Who is eligible for these funds and how quickly can you be approved for them.
Any small business with less than 500 employees.
What can you use these funds for?
This money is designed to be used for payroll for full-time employees plus benefits, such as health insurance, workers’ comp, and paid sick leave.
What’s the catch?
This isn’t your typical loan, as it will be 100% forgiven as long as you maintain your February 15th headcount numbers by June 30th. This isn’t paying people to do work. It is about paying people so they are available to do work once this is all over. For example, this means that if you have laid off your staff on February 28th, you would either need to rehire them or hire new people in order to reach your February 15th numbers before JUNE 30TH.
How long these extra funds will be available and how quickly you can expect to receive them?
The Federal Government is giving out $349 billion in forgivable loans to any small business with less than 500 employees. Once you are approved, you can get the loan within a few days.
How do I apply?
This program is designed to be easy to access. All you have to do is download and fill out this 2-page application. You can go to 7Arelief.com and get timestamped, so that you’ll be one of the first to receive funding. In addition, you also fill out the application with your local bank.
When’s the application deadline?
Application submissions open up tomorrow morning. However, officials strongly encourage applying as soon as possible as this is first-come, first-serve.
Key Things To Know About Economic Injury Disaster Loans (EIDL)
What is it?
EIDL are low-interest loans for up to $2 million at a ~3.75% interest rate. You may also be eligible for a $10,000 grant within 3 days of applying.
Who is eligible for these funds and how quickly can you be approved for them.
Any small business with less than 500 employees.
This isn’t quick money. While you might get approved within a couple of weeks, it can take 90 days or longer to get the money.
What can you use these funds for?
You can use this to pay down fixed loans and debts, vehicle and bus leases, refunds, etc. You can also use it for payroll as long as you don’t also apply for PPP.
What’s the catch?
Unlike the Payroll Protection Program, you DO have to pay this loan back.
What documents/forms do I need to apply?
You’ll need to have the following documents:
Business Loan Application (SBA Form 5)
Complete copies of your company’s most recent Federal income tax returns
Personal Financial Statement (SBA Form 413)
Schedule of Liabilities (SBA Form 2022)
How do I apply?
You can apply at covid19relief.sba.gov.
The application process is more involved in the PPP process and will be handled through SBA. All loans will be processed and 100% guaranteed by the SBA.
Can you apply for both EIDL and PPP?
- Yes. However, you can’t use one loan to pay for another. For example, Duane shared what he is doing on the webinar. He applied for an EIDL for liquidity and debt relief. Then, he is planning to use the PPP forgivable loan to cover his payroll and basic operating expenses.
Check out additional resources for tour and activity operators here.
